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HomeSoftwareAIAI Stocks Tumble as Tech Giants Fall Short of Expectations: $190 Billion...

AI Stocks Tumble as Tech Giants Fall Short of Expectations: $190 Billion Market Cap Vanishes.

AI-related businesses saw a $190 billion decline in market value late on Tuesday following the release of quarterly results by Advanced Micro Devices,Microsoft, and Alphabet that did not meet the expectations of investors, who had previously driven the companies’ prices upward.

The selloff that ensued after the bell, prompted by the reports from the tech titans, highlighted the heightened expectations of investors in the wake of the AI-driven stock market surge in recent months, which drove their shares to all-time highs with the prospect of deploying the technology throughout the corporate landscape.

Alphabet fell 5.6% as a result of the Google parent company’s lower-than-expected ad revenue for the December quarter.

In an effort to draw attention to the costs of its intense fight with Microsoft, Alphabet also announced that it will increase its spending on data centres this year in order to support its AI aspirations.

Driven by enthusiasm for artificial intelligence, Google Cloud’s revenue growth was marginally above Wall Street projections; Azure from Microsoft increased more quickly.

Because of new artificial intelligence (AI) features that draw users to its cloud and Windows services, Microsoft’s quarterly revenue exceeded analyst projections. However, after temporarily reaching a record high for the intraday on Tuesday, its stock dropped 0.7 percent in extended trading.

This month, optimism regarding AI drove Microsoft’s stock market value above $3 trillion, surpassing Apple.

Even though chipmaker Advanced Micro Devices predicted high sales for its AI chips, the company’s prediction for first-quarter revenue missed estimates, sending the stock plunging 6%.

After more than tripling in value the previous year due to optimism surrounding AI, Nvidia’s shares rose 27% in January but then gave part of those gains back in extended trading, closing more than 2% lower.

Another firm that has profited from demand connected to AI, Super Micro Computer, makes servers. Its stock fell more than 3 percent. It had reached a record high earlier on Tuesday, following the release of stunning quarterly results the previous day.

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